Low liquidity can lead to big price gaps between bids and asks in options contracts. In that case, market orders may get filled at any available price, potentially causing losses. To avoid these bad deals on illiquid options, market orders are restricted for the below:  

• All stock options and illiquid index options.
• For weekly expiries beyond the next week, monthly expiries beyond the current month, and deep in the money contracts exceeding 5%.

Although market orders are allowed for Nifty and Bank Nifty options with high liquidity in the current and next week, and the current month’s expiries. Instead, you can use these alternatives if you are dealing in the stock options category or the indices where market orders are blocked:

• Use limit orders to specify your desired price.
• For AMOs (after-market orders) on monthly index options, use limit orders at or above the best bid/ask price.